This is a draft item of legislation. This draft has since been made as a UK Statutory Instrument: The Pensions Regulator (Employer Resources Test) Regulations 2021 No. 1047
(This note is not part of the Regulations)
These Regulations make further provision relating to the “moral hazard” provisions in section 38 of the Pensions Act 2004 (c.35) (“the Act”), and in particular, what constitutes the resources of an employer, and how they are valued, for the purposes of the “employer resources test”. This section provides for the Pensions Regulator’s power to issue contribution notices.
Regulation 4 sets out what constitutes the resources of the employer and how the value of the resources is to be determined for the purposes of section 38E(2) of the Act. It also sets out the matters to be determined by the Pensions Regulator and enables the Pensions Regulator to estimate the value of the resources of an employer in certain circumstances. In addition, it sets out the circumstances in which verification of the determination made by the Pensions Regulator is not required.
An impact assessment has been carried out as part of the enactment of the measures in the Pension Schemes Act 2021 and has been published alongside the Pension Schemes Act 2021 at www.legislation.gov.uk. Paper copies can be obtained from the Department for Work and Pensions, First Floor, Caxton House, Tothill Street, London SW1H 9NA.
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